ArmInfo. A comprehensive peace agreement between Armenia and Azerbaijan will be difficult due to Baku's demands for a transit corridor through its territory and constitutional changes that will be politically difficult to agree to. This is stated in Fitch Rating's report.
"Armenia is negotiating a peace agreement with Azerbaijan following its complete loss of territorial control over Nagorno-Karabakh in 2023.
Our base case does not include an escalation of the conflict, even though Azerbaijani troops continue to have a presence in Armenia and there have been sporadic exchange of fires," the report says.
The document also notes that despite the deterioration of political relations with Russia, trade links remain strong, and dependence on Russia for energy security remains "very high."
However, Fitch does not expect US, UK or EU secondary sanctions on Armenia and expects the Armenian financial sector to comply with sanctions targeting Russia.
